Renowned crypto analyst Josh Olszewicz just lately spotlighted an especially bullish technical sample for Solana (SOL) value, suggesting a possible vital uptrend for the cryptocurrency towards the US greenback (SOL/USD). Olszewicz shared his analysis on X (previously Twitter), commenting, “SOL iHS alert. Chart is the chart, love it or hate. Looks a helluva lot better than spot ETH that’s for sure.”
Solana Poised For A 50%+ Rally?
After reaching a peak of $260 in November 2021, the Solana value skilled a steep decline in worth, plummeting to a low of $8 by the top of 2022. This decline mirrored the final downturn within the crypto market, which was additional aggravated by the collapse of the crypto change FTX, with SOL being notably affected.
However, 2023 started with a optimistic twist for Solana. The value of SOL rebounded from its $8 low to virtually $26 inside the first half of January, setting the stage for the formation of an inverse head and shoulders (H&S) sample.
This inverse H&S sample, acknowledged as a typical bullish reversal sign, started taking form in mid-January and prolonged by way of October 2023. By mid-March, the left shoulder was evident, with the top forming in early June, and the best shoulder changing into distinguished in October.
A big function of this sample is the neckline resistance, recognized at across the $25.81 mark. Solana’s value has already challenged this resistance a number of occasions, and a decisive breach above this threshold would function a robust indicator of a bullish pattern reversal. Olszewicz, in his evaluation, marked the cease loss (SL) for this commerce concept just under the best shoulder, particularly round $19.30.
Using Fibonacci extensions, Olszewicz charted potential value trajectories for SOL, ought to it efficiently surpass the $25.81 neckline. The targets are marked on the 1.618 ($33.85) and a couple of.0 ($38.82) Fibonacci ranges. If these predictions maintain, merchants is likely to be taking a look at potential earnings ranging between 35% and 55% from the present value.
VPVR Supports This Thesis For SOL
Additional insights from the Volume Profile Visible Range (VPVR) reveal that probably the most substantial buying and selling exercise for SOL is clustered across the $14 to $15 bracket. Another quantity cluster is located between the $20.83 and $19.30 marks, aligning with Olszewicz’s cease loss placement.
Another necessary takeaway is that ought to SOL break above the inverse H&S sample’s neckline, there’s a giant quantity hole as much as the primary value goal at $33.85 the place the 1.618 Fibonacci degree is located, suggesting this space is of serious curiosity and potential resistance.
In conclusion, whereas the inverse H&S sample’s emergence paints an excellent bullish image for Solana’s value trajectory, it’s important to await a confirmed breakout above the $25.81 neckline, ideally supported by a considerable buying and selling quantity, earlier than confirming the bullish projections laid out by Olszewicz.
At press time, SOL rose above 200-day EMA and traded at $23.81.
Featured picture from Shutterstock, chart from TradingView.com